Head to Head Review: Diversified Healthcare Trust (NASDAQ:DHCNI) and CareTrust REIT (NYSE:CTRE)

CareTrust REIT (NYSE:CTRE) and Diversified Healthcare Trust (NASDAQ:DHCNI) are both real estate companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares CareTrust REIT and Diversified Healthcare Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareTrust REIT	$476.39 million	19.79	$320.54 million	$1.59	25.09
Diversified Healthcare Trust	N/A	N/A	N/A	N/A	N/A

CareTrust REIT has higher revenue and earnings than Diversified Healthcare Trust.

Institutional & Insider Ownership

87.8% of CareTrust REIT shares are held by institutional investors. 0.7% of CareTrust REIT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for CareTrust REIT and Diversified Healthcare Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareTrust REIT	0	3	9	1	2.85
Diversified Healthcare Trust	0	0	0	0	0.00

CareTrust REIT currently has a consensus target price of $44.82, indicating a potential upside of 12.33%. Given CareTrust REIT’s stronger consensus rating and higher possible upside, equities analysts plainly believe CareTrust REIT is more favorable than Diversified Healthcare Trust.

Profitability

This table compares CareTrust REIT and Diversified Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CareTrust REIT	62.19%	8.52%	6.64%
Diversified Healthcare Trust	N/A	N/A	N/A

Summary

CareTrust REIT beats Diversified Healthcare Trust on 10 of the 10 factors compared between the two stocks.

About CareTrust REIT

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States.